In the depository system, the transferor can give standing instructions to its DP for automatic transfer of securities sold (when trading and Demat accounts are with the same broker). State True or False.

Practice question from NISM Series VII Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

True

Correct answer
B

False

Why this is the answer

If a client’s trading and Demat accounts are with the same broker, they can give standing instructions to their Depository Participant (DP) for automatic delivery of securities sold, simplifying the settlement process.

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